Roundhill Investments is investing in the “Recession Kings” of the market with its latest ETF. The Roundhill S&P Dividend Monarchs ETF (NYSE Arca: KNGS) begins trading today on the New York Stock Exchange. The fund invests in U.S. blue-chip companies that have grown their dividends for at least 50 consecutive years.
KNGS seeks to track the performance, before fees and expenses, of the S&P Dividend Monarchs Index. The Index includes 36 stocks that have raised their dividends each year for a minimum of 50 years, and yields 3.5%. The top holdings include MMM, Target, AbbVie, Coca-Cola, Johnson & Johnson, and PepsiCo.
Raising Dividends Through Pandemics and War
Roundhill’s Chief Strategy Officer Dave Mazza is calling the securities in this index the “Recession Kings.”
“Considering there are not many companies that have been public since 1973, it’s remarkable that these 30+ names have been in a position to consistently raise their dividends over the last 50 years,” he said. This includes “through times of war, bursting of multiple financial bubbles, and even a pandemic.”
“Advisors continue to seek out alternative income strategies than investing in bonds,” said VettaFi’s Head of Research Todd Rosenbluth. “To many, the consistent dividend payments of blue-chip companies are highly valuable.”
KNGS carries an expense ratio of 0.35%
Roundhill is best known for its thematic offerings. The issuer has launched several first-to-market thematic funds, including the first metaverse and sports betting ETFs: the Roundhill Ball Metaverse ETF (METV) and the Roundhill Sports Betting & iGaming ETF (BETZ). The issuer launched in August the Roundhill S&P Global Luxury ETF (LUXX), which provides investors with access to the luxury goods sector.
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